Investment agreement

 

Home
Site Map
Add Term
Search
About Us
Contributors

Investment agreement

An contract specifying the rights and responsibilities of a host government and a corporation in the structure and operation of an investment project.



Investment agreement

Similar Matches

Investment history

Investment history

The history of a member firm that establishes certain norms in respect of its investment practice.


Investment club

Investment club

A group of individuals who combine their capital and invest it collectively. The advantage of these clubs is that members' funds are invested in a range of securities thus reducing risk and fees. There are also educational advantages. In the UK, the driving force behind the investment club movement is ProShare. (http://www.proshare.org.uk)


Investment letter

Investment letter

A letter of intent between the issuer of new securities and the buyer, in the private placement of these new securities. The letter of intent establishes that the securities are being bought for a minimum time period and are treated as an investment, not for resale. If no such letter exists, the securities must be registered with Securities and Exchange Commission.


Value Line investment survey

Value Line investment survey

A proprietary service that ranks stocks for timeliness and safety.


Split capital investment trust

Split capital investment trust

An investment trust with a limited life, in which the equity capital is divided into two classes - income shares and capital shares.Holders of income shares receive the majority of the trust's income throughout its life and a specified capital amount on liquidationHolders of capital shares receive virtually no income during the trust's life but on liquidation receive all the assets after repayment of capital to holders of income shares. In other words they get the benefit of most of the capital growth.The raison d'etre of split capital investment trusts is that a single trust can accommodate the requirements of two types of investor in one fund, and provide better performance for both than they would be able to achieve if they invested in separate funds.It works like this:Ian Illingworth has 10,000 to invest and wants to get maximum income from it. He buys 'Income Shares' in the Split.Colin Casey has 10,000 to invest and wants to get maximum capital growth from it. He buys 'Capital Growth Shares' in the Split.The Split invests their pooled money and during the lifetime of the trust pays out all the income to Ian. At the end of the Split's life, when the capital value of the fund has risen to, say, 60,000, it pays Ian back his 10,000, and pays 50,000 to Colin.How have Ian and Colin benefited?Ian has benefited because for 7 years he has received the income on 20,000 even though he only invested 10,000.Colin has benefited because he has received the capital growth on 20,000 even though he only invested 10,000 and, being a higher-rate taxpayer, it has suited him very well not to have received any income on his 10,000 in that time.Basically, it is as if Ian said to Colin 'You have the capital growth on my 10,000' and Colin said to Ian 'Fine, I'll give you the income on my 10,000 in return.'There are many other classes of share within splits, and the thinking behind them gets progressively more complex. It is also important to note that Splits are geared investments (they can borrow money) which, depending on performance, can either be beneficial or detrimental to investors. If you are interested in what they have to offer it is essential to get specialist advice.


Further Suggestions

Recognised Investment Exchange
Community Reinvestment Act (CRA)
Zero investment portfolio
Foreign investment argument for protection
local authority investment
Investment value
Investment management
ethical investment
Brown field investment
return on investment
Monthly investment plan
Association of Private Client Investment Managers and Stockbrokers
Income investment company
investment grade
Short term investment services
Foreign direct investment (FDI)
Investment company
Alternative investments
Bank Investment Contract (BIC)
investment income
Investment Advisers Act
Investment certificate
Unit investment trust
alternative investment
Passive investment management


 
All rights Reserved. Do not copy without permission.